LBRDA Dividend Type Payments
Although LBRDA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Broadband Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Liberty Broadband Corporation - Class A (LBRDA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.12 |
88.53 |
86.51 |
-1.13 |
99K |
16 |
13B |
LBRDA Dividend-Like Income Using Covered Calls
With LBRDA at 86.51, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield |
Annual Premium |
Cents/Day |
| 3% |
2.60 |
0.7 |
| 5% |
4.33 |
1.2 |
| 10% |
8.65 |
2.4 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On LBRDA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
90.00 |
0.75 |
61 |
1.2 |
1.47 (1.7%) |
| Apr 17 |
90.00 |
4.60 |
151 |
3.0 |
1.47 (1.7%) |
| 5% Yield On LBRDA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
90.00 |
0.75 |
61 |
1.2 |
1.47 (1.7%) |
| Apr 17 |
90.00 |
4.60 |
151 |
3.0 |
1.47 (1.7%) |
| 10% Yield On LBRDA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
90.00 |
4.60 |
151 |
3.0 |
1.47 (1.7%) |
| Jul 18 |
90.00 |
7.60 |
243 |
3.1 |
1.47 (1.7%) |
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